Non-Deterministic Wallet (Random Wallet)

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Pronunciation

[non-di-tur-muh-nis-tik wol-it]

Analogy

Think of a non-deterministic as a key maker who creates each new key from scratch using a completely new mold every time. Each key is entirely unique and unrelated to the others—if you lose one, knowing about the others doesn't help you recreate it. This is unlike a system where all keys follow a pattern, like copies made from a master key. With random keys, you need to keep a separate copy of each individual key, because there's no formula to regenerate them.

Definition

A that generates each new and using independent random processes, with no mathematical relationship between keys. Unlike wallets, each key in a non-deterministic must be individually backed up, as they cannot be regenerated from a single seed or master key.

Key Points Intro

Non-deterministic wallets represent an earlier approach to with distinct characteristics.

Key Points

Independent generation: Each private key is created using separate random number generation, with no algorithmic connection between keys.

Individual backups: Requires saving each private key separately, as no single backup can restore multiple keys.

Key pool approach: Many early implementations pre-generated batches of keys ("key pools") to have addresses ready for use.

Absolute isolation: A compromised key reveals no information about other keys in the wallet, providing compartmentalized security.

Example

In 2011, David uses an early version of Core that employs non-deterministic . Each time he requests a new receiving , the creates a completely new random . The maintains a .dat file containing all of his private keys. David must create a new backup of this file each time he generates new keys, as any older backup would be missing the newest keys. If he loses his file, he would lose access to all addresses that weren't included in his most recent backup.

Technical Deep Dive

Non-deterministic wallets typically use cryptographically secure random number generators (CSPRNGs) to create private keys. Each 256-bit is generated independently, then processed through (usually for ) to derive the corresponding . This is then hashed (SHA-256 followed by in 's case) to create the . The software maintains a database (often encrypted) of all key pairs, with no cryptographic relationship between them. Early wallets like Core (before implementation) used key pools—pre-generating 100 or more keys in advance to ensure the .dat file backup included keys for future addresses. Some implementations used techniques like key stretching or of the key database for added security, but the fundamental model remained one of individually created and stored random keys.

Security Warning

Non-deterministic wallets require frequent backups—you must create a new backup whenever you generate new keys or addresses. Failure to maintain current backups can result in permanent loss of funds sent to addresses whose keys weren't included in your backup. For recovery planning, consider generating a limited number of addresses at once and thoroughly backing up before creating more.

Caveat

While non-deterministic wallets offer theoretical security benefits through key isolation, their backup complexity makes them highly vulnerable to user error and data loss. The frequent backup requirement often leads to poor security practices like keeping digital backups in accessible locations. Additionally, many implementations require storing all private keys in a single encrypted file, creating a concentrated attack target. These practical limitations have led to wallets becoming the industry standard, with non-deterministic wallets primarily remaining in legacy systems.

Related Terms

Private Key

Deterministic Wallet

Blockchain & Cryptocurrency Glossary

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